The federal budget deficit rose to $1.16 trillion in the first eight months of fiscal 2023, according to a Bloomberg report.

Fiscal Year 2023 began in October 2022.Federal budget deficit rose to $240 billion in May, according to Bloomberg report On Monday, the total so far in fiscal 2023 will reach $1.16 trillion. The country’s cumulative deficit for the first eight months of fiscal 2023 is “up from $426 billion in the same period last year.” according to According to Reuters, it marks a 191% increase from May 2022.

According to Bloomberg, the Treasury Department has attributed the rising deficit primarily to rising interest costs, but also rising Medicare and Medicaid rates, and “federal depositor insurance costs associated with the failure of a handful of local banks.” It is said that it is a factor. (Related: Democrats Move to Seize Congressional Authority over Debt Ceiling: Report)

The US federal budget deficit reached $1.16 trillion in the first eight months of the fiscal year, up 191% from the previous year. https://t.co/LCREOrKImx

— Bloomberg (@business) June 12, 2023

On June 3, President Joe Biden signed into law a bill that would suspend the $31.4 trillion U.S. debt ceiling until January 2025, according to Reuters. Since then, the Treasury Department has planned a significant increase in its cash reserves, which fell to less than $23 billion in early June.The Treasury Department has set a target of $550 billion in available funds by the end of June, according to Bloomberg. report As we will discuss in another article, this replenishment process could result in over $1 trillion in new securities, which could have undesirable consequences by draining liquidity from the banking sector.